Poland acquires shares of Norwegian continental shelf gas field

Friday, October 19, 2018 2:00:39 PM

The Polish Radio announced that the Norwegian subsidiary (Upstream Norway AS) of the Polish oil and gas company (PGNiG) acquired Equinor Energy AS concession shares on the Norwegian continental shelf for $ 220 million.

PGNiG reported that the signed contract states the acquisition of a 30% stake in the PL044 concession at Equinor Energy AS, which is the equivalent of buying a 42.38% stake in the development of the Tommeliten Alpha field, operated by ConocoPhillips Norway AS.

Tommeliten Alpha is a gas condensate field in the North Sea, in close proximity to the Ekofisk field. According to the Norwegians, its recoverable resources amount to 12.8 billion cubic meters of natural gas and 5.9 million cubic meters of oil.

According to the current plans, the Polish company will start mining mineral resources in 2024. PGNiG hopes that the gas field will allow the company to increase the production of natural gas by more than 500 thousand cubic meters annually for the first 6 years. Poland will transport produced gas via the Baltic Pipe gas pipeline.

Until now, PGNiG had shares in 20 concessions on the Norwegian Continental Shelf and produced 600 million cubic meters of gas. By 2022, production is expected to increase to 2.5 billion cubic meters of gas.